Days Sales Outstanding - DSO
A measure of the average number of days that a company takes to collect revenue after a sale has been made. A low DSO number means that it takes a company fewer days to collect its accounts receivable. A high DSO number shows that a company is sellin...
In accountancy, days sales outstanding (also called DSO and days receivables)
is a calculation used by a company to estimate their average collection period.
A low DSO value means that it takes a company fewer days to collect its accounts
receivable. A high DSO number shows that a company is selling its product to ...
The days sales outstanding calculation, also called the DSO or days' sales in
receivables, measures the number of days it takes a company to collect cash
The average collection period is the number of days
, on average, that it takes a company to collect its credit accounts or its accounts receivables. If the ratio is decreasing, then customers are not only paying their credit accounts on time but faster than they have i... More »
Calculating Days Sales Outstanding (DSO). This section provides an overview of
days sales outstanding (DSO) and discusses how to calculate DSO.
Days' sales outstanding ratio (also called average collection period or days' sales
in receivables) is used to measure the average number of days a business ...
What it is: Days sales outstanding (DSO) is the ratio of receivables to the daily
average of credit sales. ... DSO = Receivables / (Net Annual Sales on Credit / 360
Sep 21, 2014 ... Days sales outstanding (DSO) is the average number of days that receivables
remain outstanding before they are collected. The measurement ...
Days Sales Outstanding or DSO is a measure of accounts receivable. DSO is
also known as average collection period, or receivable days. It's a measure of the